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Point Loma Resources Announces Transaction Involving Asset Swap and Cash Injection for Its Wizard Lake Property

CALGARY – Point Loma Resources Ltd. (TSXV:PLX) (“Point Loma” or the “Corporation“) is pleased to announce a transaction to rationalize its assets and monetize its working interest at Wizard Lake, Alberta.


  • Point Loma has entered into a Purchase and Sale agreement (“PSA“) with White Bark Energy Ltd. (WBE:ASX, “White Bark“), the parent company of Salt Bush Energy Ltd. (“Salt Bush“), to transfer its working interests in the Wizard Lake area to Salt Bush for consideration of $6.8 million in the form of $4.0 million cash (the “Cash Consideration“), $2.0 million of stock in White Bark, the reduction of outstanding payout amounts of approximately $0.8 million and the transfer from Salt Bush to Point Loma of approximately 240 boepd (based on Q3 producing rates) of its current working interests in various other joint properties in Alberta (the “Transaction“). Additionally, Point Loma retains a 10% working interest in certain Wizard Lake area assets until December 31, 2020, which is expected to provide the Corporation with additional revenues through 2020.
  • The Transaction is scheduled to be completed over three closings. Pursuant to the PSA, Point Loma will receive $1.2 million of the Cash Consideration on completion of the first closing, anticipated in late-December 2019, with the balance of $2.8 million on the second closing, which is anticipated prior to March 31, 2020, subject to a financing by White Bark and receipt of regulatory approvals. Share consideration in connection with the Transaction will be $2.0 million issued on completion of the second closing with $1.0 million held in escrow for 4 months and another $1.0 million released upon final closing, on or about December 31, 2020, subject to receipt of regulatory approvals.
  • The funds from the Transaction will be utilized to commence a multi-stage corporate turnaround plan.
  • The additional production associated with the properties transferred to the Corporation is expected to supplement Point Loma’s revenues immediately upon completion of the first closing.
  • The Transaction is expected to increase Point Loma’s net acreage to approximately 165,000 acres, where the Corporation has identified future locations and opportunities analogous to Point Loma’s Wizard lake discovery.

Proposed Transaction

Point Loma has invested approximately $3.0 million to date at Wizard Lake. Pursuant to the Transaction, Point Loma will receive $6.0 million in cash and White Bark stock, approximately 240 boepd of working interest production and see a working capital deficit reduction of approximately $0.8 million associated with the cancellation of a facility payout account.

“This transaction points to further potential upside on Point Loma’s large 165,000 net acreage position and deep inventory of oil opportunities,” said Terry Meek, President and CEO of Point Loma.

Mackie Research Capital Corporation acted as the sole financial advisor to Point Loma Resources with respect to the marketing of the Company’s Rex Oil assets and the Transaction.

Point Loma maintains an extensive inventory of additional opportunities identified through analysis of historical penetrations that are indicative of bypassed oil pay on its lands. A description of the Corporation’s other oil pool development opportunities can be found in the corporate presentation on the Point Loma website at

About Point Loma

Point Loma is a public oil and gas exploration and development company focused on conventional and unconventional oil and gas reservoirs in west central Alberta. The Corporation controls over 165,000 net acres (250 net sections) and has a deep inventory of oil opportunities in the Mannville (Upper and Lower), Banff, Nordegg, and Duvernay Shale formations. Point Loma’s business plan is to utilize its experience to drill, develop and acquire accretive assets with potential to employ horizontal multi-stage frac technology and to exploit opportunities for secondary recovery. For more information, please visit Point Loma’s website at or Point Loma’s profile on the System for Electronic Document Analysis and Retrieval website at

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